7s model with examples. The McKinsey 7S Model Explained With a Practical Example 2022-10-27

7s model with examples Rating: 4,9/10 1808 reviews

The 7s model, also known as the McKinsey 7s model, is a framework for organizational design and effectiveness. It was developed by Tom Peters and Robert Waterman, two consultants at McKinsey & Company, in the 1980s. The model suggests that there are seven interdependent factors that need to be aligned in order to ensure that an organization is functioning effectively. These seven factors are: strategy, structure, systems, shared values, style, staff, and skills.

The first factor, strategy, refers to the long-term plan or direction of an organization. This includes the goals and objectives that the organization has set for itself, as well as the specific actions it will take to achieve those goals. For example, a company might have a strategy of expanding into new markets by acquiring smaller competitors.

The second factor, structure, refers to the way in which an organization is organized and the way that tasks and responsibilities are divided among its members. This includes the formal hierarchy of an organization, as well as the informal networks and relationships that exist within it. For example, a company might have a hierarchical structure with clear lines of authority, or it might have a more decentralized structure with greater autonomy for individual teams.

The third factor, systems, refers to the processes and procedures that an organization uses to get things done. This includes everything from the systems for communication and decision-making, to the systems for tracking and measuring performance. For example, a company might have a system in place for reviewing and approving new projects, or a system for tracking customer satisfaction.

The fourth factor, shared values, refers to the values and beliefs that are shared by the members of an organization. These values serve as a guiding force for the organization and help to shape its culture and behavior. For example, a company might have a strong commitment to sustainability, or a focus on innovation and creativity.

The fifth factor, style, refers to the leadership style of an organization and how it influences the behavior of its members. This includes the way that leaders communicate and interact with their subordinates, as well as the way that they make decisions and solve problems. For example, a company might have a more directive leadership style, with leaders making decisions for their subordinates, or it might have a more participative style, with leaders seeking input and collaboration from their team members.

The sixth factor, staff, refers to the people who work for an organization and the roles and responsibilities that they have. This includes not just the technical skills and expertise that they bring to the organization, but also their attitudes and behaviors. For example, a company might have a staff that is highly skilled in their specific areas of expertise, but also has a strong commitment to teamwork and collaboration.

Finally, the seventh factor, skills, refers to the specific skills and capabilities that an organization has developed over time. These skills can be technical, such as expertise in a particular industry or technology, or they can be more general, such as strong problem-solving or communication skills. For example, a company might have developed a strong expertise in data analytics, or it might have a track record of successful project management.

Overall, the 7s model is a useful tool for analyzing and improving the effectiveness of an organization. By considering each of the seven factors and ensuring that they are aligned, organizations can identify areas for improvement and take steps to become more efficient and effective.

The McKinsey 7S Model

7s model with examples

Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. TV news channels are generally very influenced by politicians, lobbies, etc. Used to track the information of the embedded YouTube videos on a website. When something in your business or even team is not functioning, odds are there's inconsistency among a few of the 7 elements revealed within the model. We have also analyzed 20 of his videos. So the underlying statement about the 7s framework is that these seven elements need to maintain a balance and align properly to earn a name in the market.

Next

McKinsey 7S Model Framework

7s model with examples

Your action plans should have timelines and assigned responsibilities. The main point of the McKinsey change management framework using 7S is that these are seven equally important elements of your organization. You may conclude that the CEO needs to implement a mentoring program so employees know who they should turn to for advice. Is it appropriately, provided exactly what we are executing? Where Did it Come From? You should prioritize filling these positions before moving forward with your expansion plans. .

Next

McKinsey 7S Model: The 7S Framework Explained

7s model with examples

Second, new shared values should evolve or be introduced in an organization, because many people from new cultures come to the company and they all bring their own values, often, very different than the current ones. This may hinder teamwork performance and communication between different regions. Remember, the more work you put into understanding your organization's current situation, the easier it will be to make improvements in the future. Review the situation frequently to stay aware of the remedial action you might want to take. Are these abilities widely available? Aside from that usual elements that you can see in a 7s model, there are also other information provided.

Next

McKinsey 7S model of Nokia

7s model with examples

To ensure that an organization has the right skill set to achieve its goals, it can either Style Style refers to the management style that is prevalent in a company. The company strives to offer a wide range of items to its customers at the lowest possible price. For example: You can objectively measure whether one Strategy is better than another. Capabilities and skills are also included. The shared values of your employees should reflect the mission and vision of the company.

Next

McKinsey 7s Framework With Examples

7s model with examples

Cookie Duration Description cookielawinfo-checbox-analytics 11 months This cookie is set by GDPR Cookie Consent plugin. That is why it is a given that it provides various benefits in employing it. McKinsey 7S Model of Nokia — Strategy Struggling to compete with Apple and adapt to the technological developments that were disrupting the business environment at that time, Nokia top management had to choose between three strategies: optimizing costs and volume, maximizing performance, or maximizing security. For example, Google is a cool, tech company; Microsoft is a professional company, etc. Whenever you have to analyze your Company or other Businesses, you should think about using this Tool. Are you aware how good your business is placed to accomplish the goals? Technology and workflows can be used seamlessly by onsite and remote teams.

Next

What is McKinsey’s 7

7s model with examples

And to be successful, we must come out of our comfort zones and embrace the change. What needs to be changed? Using this ready-made PPT Slide, you can make informed decisions to re-organize incorporate changes that streamline the haphazard processes. Other elements like shared values, staff and organizational structure are misaligned. Once you get an answer to all these questions, analyze them, and find the alignment, conflicts, consistency, strengths, gaps, and weaknesses. The problem, in this case, lies with the Strategy S.

Next

McKinsey 7s Model: A Complete Overview (2021)

7s model with examples

Team members should have been empowered to speak up, come up with solutions and work independently. These people discovered 7 intrinsic aspects of a company which need to line up so that it is productive. Shared Values The McKinsey 7s approach is built around shared values. The authors of the framework emphasize that all elements must be given equal importance to achieve the best results. Business management style is still chaotic and it is a problem of top managers lacking management skills. It aims to depict how change leaders can effectively manage organizational change by strategizing around the interactions of seven key elements: structure, strategy, system, shared values, skill, style, and staff.

Next

Understanding the McKinsey 7s Model and How to Use It

7s model with examples

The company opens new offices in Asia, North and South Americas. For example, some departments may be more open to outside ideas than others. Managers treating onsite and remote employees the same as far as job duties, importance, promotions, etc. We provide the following steps that should help you to apply this tool: Step 1. He is always happy. Each element highlights its purpose that allows organizations to prevent any failure to implement change. What are its Strengths and Weaknesses? What is the 7-S model? Motivation and reward systems also have to be adapted to cultural differences.

Next

Top 5 7S Framework Templates with Samples and Examples

7s model with examples

The model is also a blueprint for organizational change. The company chose the wrong strategy which ultimately lead to its demise. The impact on the organization may lie behind the fact that you do not have the right people in place to make this change happen. Strategy: Nokia faced a dilemma and had to optimize costs and volume, enhance performance, and maximize security. The McKinsey change management model includes both, ensuring both the human and technical elements of change management are kept in focus.


Next